Good Thursday Morning.

Sorry for the lack of posts yesterday as I was in Boston for the day. But its back to normal this morning and lets begin with a Citigroup upgrade of Valero LP to buy from hold. And thats it in the upgrade department.Meanwhile lets revisit a few of the stocks that have had some moves lately. If the AMZ MLP index is going to briefly pause or correct here before breaking out it may afford opportunities in buying stocks that have extended rallies since October 1st. One that does not have an extended rally is Valero Holdings (VEH) the GP of Valero LP which has been on a tear lately after boosting its distribution 3 cents. (And once and for all the distribution boost was 3 cents and not 6 cents from last quarter. Yahoo numbers on this are wrong, the company was at 3.54 annual not 3.42 as listed...now at 3.66)


This one may have just started its move as it is still below the offering price. Might be headed back to 23 area in a hurry so if buying..buy carefully.

Regency Partners(RGNC) has done well for us as has Markwest Hydrocarbon (MWP) and LIN Energy (LINE). All three look extended and i would use the 34 day moving average as an area where these can be bought without much downside risk. Its always frustrating to buy something and watch it go down a couple of points before turning around.


LIN Energy is interesting since it has alreading pre-announced a big increase in its distribution for next quarter and based on that distribution this stock should be selling for 27-28 at least. So ultimately it will get there before settling back.


If Markwest (MWP) can pull back to the 34 day moving average it will give us a buy point around 30 or so. If it gets back to that level i will be adding to positions.



There are a few other charts to look at that i will post about later.

Some breaking news this morning on Williams Partners (WPZ) as it announces earnings. Also Energy Transfer Partners has details on the progress of its recent purchase and it will be issuing equity to Energy Transfer Equity (ETE).

Early futures are higher this morning with economic data due this morning. The 10 year is heading back to 4.50% which is why our group is holding up so well. Bill Gross from Pimco is forecasting a 3 handle again on the 10 year in 2007 and if that happens it means 2 things. Recession...and higher MLP prices!